Annual Property Taxes and Fees to Pay As An Owner of a Cyprus Property

Annual Property Taxes and Fees to Pay As An Owner of a Cyprus Property

A. IMMOVABLE PROPERTY OWNERSHIP TAX

As of 1 January 2017 there is no immovable property tax in Cyprus.

B. LOCAL AUTHORITY FEES

Depending on the size of your property, local authorities charge between €85 – €256 per annum for regular refuse collection, street lighting, sewerage, and similar community services. Communal Services fees are payable to your local municipal authority.

Communal services fees - communal charges greatly depend on the type and size of property that you have purchased. If you have purchased a property that is part of project which consists of a facilities such as swimming pool, jacuzzi, spa etc- communal fees will need to cover an owner’s share of the cost of cleaning and maintaining the facilities. As such, the communal charges will be substantially higher in comparison to a property bought on a project which provides only basic facilities. Usually, such charges range between €30 -€50 on a monthly basis for small multi-residential complexes.

C. MUNICIPALITY TAX

As the registered owner of the property, you are required to pay an annual Municipality Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 0.001‰ - 0.002‰. Municipality tax is payable to your local municipal authority.

D. SEWAGE TAX

As the registered owner of the property, you are required to pay an annual Sewerage Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 0.03‰ – 0.035‰. Sewerage taxes are payable annually to your local sewerage board.

E. OTHER UTILITIES/INSURANCE RATES

Other utility costs are fairly low – telecommunication rates are very competitive worldwide, and electricity costs on average €500 annually depending on average consumption, and water rates at €200 on average depending on average consumption annually. These are usually payable monthly or quarterly in advance. They vary from development to development and depend on the area and type of the property.

Insurance Rates - In general, institutions are also English speaking and the procedure of filing and claiming insurance is very similar to that of EU countries such as the UK. Moreover, property insurance is priced at 1.65% of the current property value and contents are determined on 2% of their total value.

F. INHERITANCE TAX

There is no inheritance tax in Cyprus.

G. TAX PRIVILEGES

Personal effects, household goods and furniture can be imported duty free by immigrant retirees, provided they are for personal use and have been used for a reasonable period of time - approximately one year. Also, there is no duty on a car, and retired couples enjoy the additional concession of two duty free cars.

H. TAX ADVANTAGES

Retirees drawing a pension are exempt from withholding taxes at source and may be taxed at the nominal rate of about 4% or less depending on income. Additionally, Cyprus has Double Taxation treaties with many European and other countries, safeguarding its residents from paying tax in both countries.